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Problem 1: Chapter 9: Child Care Deduction Instructions: Both Mr. Byrd and Mrs. Byrd are employed. During 2019, Mr. Byrd had opened a restaurant and

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Problem 1: Chapter 9: Child Care Deduction Instructions: Both Mr. Byrd and Mrs. Byrd are employed. During 2019, Mr. Byrd had opened a restaurant and had business income of 511000. Mr. Byrd also had net employment income of 551000, after deducting $9500 of employment deductions. He also had 57,000 of interest income. Ms. Byrd had gross employment income of 584000, which included taxable benets of $12,000. She also had $8000 of dividend income. Since they both had to work long hours, they had to pay for care of their children. They have four children: Clarence (15 years old and eligible for the disability tax credit), Ida (10 years old), Gary (5 years old), and Pearson (2 years old). Payments for childcare during the year amounted to $525 per week for 52 weeks of the year. Additionally, they sent Clarence and Ida to overnight summer camp for 4 weeks each, and paid 55000 total for this camp. Also during the current year, there was a period of 9 weeks during which Mr. Byrd was hospitalized due to injuries suffered during a hockey game. Required: Determine the maximum amount that can be deducted by Mr. and Mrs. Byrd for the year ending December 31, 2019 for child care expenses. Final answers to each step should be filled in the yellow boxes on the "P1 Response" tab. Show any extra work or notes in the green space provided on the "PlResponse" tab. Child care deduction calculation- Mrs. Byrd: Lesser of A or B A: Least of 3 things 1) Total eligible child care costs paid 2) Annual maximum child care expense amount 3) 2/3 * (Earned income) A: Least of 1, 2, or 3 B: Periodic amount * number of weeks lower income spouse was hospitalized Mrs. Byrd's child care deduction: lesser of A or B: Child care deduction calculation- Mr. Byrd: Deduction= Least of 3 things 1) Total eligible child care costs paid 2) Annual maximum child care expense amount 3) 2/3 * (Earned income) Least of 1, 2, or 3 Less: Mrs. Byrd's deduction Mr. Byrd- deduction

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